Correlation Between Americas Silver and Liberty Gold
Can any of the company-specific risk be diversified away by investing in both Americas Silver and Liberty Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Americas Silver and Liberty Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americas Silver Corp and Liberty Gold Corp, you can compare the effects of market volatilities on Americas Silver and Liberty Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Americas Silver with a short position of Liberty Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americas Silver and Liberty Gold.
Diversification Opportunities for Americas Silver and Liberty Gold
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Americas and Liberty is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Americas Silver Corp and Liberty Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Gold Corp and Americas Silver is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Americas Silver Corp are associated (or correlated) with Liberty Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Gold Corp has no effect on the direction of Americas Silver i.e., Americas Silver and Liberty Gold go up and down completely randomly.
Pair Corralation between Americas Silver and Liberty Gold
Assuming the 90 days trading horizon Americas Silver Corp is expected to generate 1.39 times more return on investment than Liberty Gold. However, Americas Silver is 1.39 times more volatile than Liberty Gold Corp. It trades about 0.12 of its potential returns per unit of risk. Liberty Gold Corp is currently generating about -0.04 per unit of risk. If you would invest 41.00 in Americas Silver Corp on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Americas Silver Corp or generate 24.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Americas Silver Corp vs. Liberty Gold Corp
Performance |
| Timeline |
| Americas Silver Corp |
| Liberty Gold Corp |
Americas Silver and Liberty Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americas Silver and Liberty Gold
The main advantage of trading using opposite Americas Silver and Liberty Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americas Silver position performs unexpectedly, Liberty Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Liberty Gold will offset losses from the drop in Liberty Gold's long position.| Americas Silver vs. Excellon Resources | Americas Silver vs. GoGold Resources | Americas Silver vs. Fortuna Silver Mines | Americas Silver vs. Dolly Varden Silver |
| Liberty Gold vs. First Majestic Silver | Liberty Gold vs. Ivanhoe Energy | Liberty Gold vs. Orezone Gold Corp | Liberty Gold vs. Faraday Copper Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |